Hong Kong Sets HK$25M Capital Floor for Fiat Stablecoin Issuers
Hong Kong has introduced a minimum capital requirement of HK$25 million for firms seeking to issue fiat-backed stablecoins in the city. Regulators also mandate a clear, legally enforceable redemption mechanism so holders can convert stablecoins to fiat at a 1:1 rate within a short period, tightening the framework around issuers’ obligations.
The rules are aimed at strengthening consumer protection and market confidence by ensuring issuers have a financial buffer and predictable redemption rights. While the regime could attract established financial players and institutional issuers seeking regulatory certainty, it may raise entry costs for smaller startups, potentially shifting some issuance activity to other jurisdictions. Overall, the policy signals Hong Kong’s intent to foster a regulated, trustworthy stablecoin market aligned with traditional finance expectations.